Silvergate Capital price target lowered to $38 from $58 at Keefe Bruyette

Keefe Bruyette analyst Michael Perito lowered the firm’s price target on Silvergate Capital to $38 from $58. The analyst still believes Silvergate’s business relationship with FTX "is being misrepresented in size and scope." However, the operating environment has "seemingly grown considerably more challenging" for Silvergate, with institutional investors leaving the crypto ecosystem all-together to protect themselves from the full fallout of FTX, Perito tells investors in a research note. Accordingly, the analyst is assuming a smaller balance sheet "to give investors a better idea of earnings power in a more onerous scenario." Silvergate now trades below "burn-down" tangible book value, Perito adds.